Blue Cross Sues Scranton After City Defaults On $2 Million Note

The city executed a note on Oct. 27 promising to pay Blue Cross $2 million in unpaid bills by Jan. 5, the lawsuit states. But the city failed to pay and that constituted a default, the lawsuit states.

As of Wednesday, no payment had yet been made and the lawsuit seeks the principal amount of $2 million as well as 5 percent interest that accrued to $58,904 from Jan. 6 to Wednesday, for a total amount sought of $2,058,904, according to the complaint.

Blue Cross has been one of the city’s largest vendors with bills that have gone unpaid under the city’s financial crisis. As such, the lawsuit was not necessarily unexpected, said Mayor Chris Doherty, adding that he is in contact regularly with Blue Cross about the situation and the firm is continuing to provide health care coverage for the city’s employees.